Acquisition of Mylner

Frutarom Industries Ltd has signed an agreement, through its subsidiary in Brazil, to acquire 100% the share capital of Mylner Industria E Comercio Ltda, a Brazilian Flavors company, and its Brazilian mother company, Vila Osorio Participacoes s/a (the companies together shall hereafter be referred to as: “Mylner”), in return for approximately US$ 15.7 million (approximately 27.1 million BRL).

Mylner’s sales turnover in 2011 came to US$11.4 million (approximately 19 million BRL) a growth of some 8% compared to 2010, when sales turnover came approximately US$10 million (approximately 17.5 million BRL).

Mylner, founded in 1974, develops manufactures and markets flavor solutions, focusing mainly on sweet flavors for beverages and baked goods, natural plant extracts and natural flavor products. Mylner has a modern development, production and marketing site near Sao Paulo, Brazil, including land for future expansion,and employs some 70 workers.

Mylner’s wide customer base includes leading food and beverage manufacturers in developing countries in Latin America and mainly Brazil.José A. Miguel Neto, founding partner of law firm Miguel Neto Advogados Associados led the deal team, assisted by Decio Andrade, Esq. (MNA’s partner as well) and Liliane Saito, Esq. José A. Miguel Neto commented:

“Frutarom was  already our client, therefore, this was not our first operation with them. We really had a great experience, of course implying certain challenges - such as the European crisis and the difficulty in negotiating with non compete clauses with the sellers and their tax planning. However, we negotiated a lot and looked for solutions that could accommodate all parties to overcome these challenges.”